What's Reo Stand For

Real estate owned (REO) is the term for a property owned by a lender because it failed to sell in a foreclosure auction after the borrower defaulted on their mortgage. … REOs are often sold at a discount by banks and other lenders. However, they are usually sold “as is” and are often in disrepair.

Is a REO the same as a foreclosure?

An REO (Real Estate Owned) property, also referred to as a bank-owned property, has already gone through the foreclosure process and the mortgage lender or bank has taken ownership of it as a result of a failed foreclosure sale in an auction. The bank becomes the owner of the property.

What is REO company?

REO stands for real estate owned and refers to properties foreclosed by the bank. If the bank fails to sell the foreclosed home at an auction, the bank will use the services of a REO asset management company. These companies try to sell the home at its current market value, often to real estate investors.